Global macro overview for 10/09/2015:
The Reserve Bank of New Zealand (RBNZ) has cut the interest rate from the level of 3.00% to 2.75% in line with most analysts’ expectations. Governor Wheeler’s comments at the press conference mostly regarded the house market in Auckland that is being watched very carefully as its house prices are one of the most expensive in the world. Moreover, he indicated the RBNZ has a potential to cut more again if needed and admitted that raising the rates in 2014 wasn’t a mistake. He said there is plenty of conсurns that could influence the New Zealand economy right now and recent devaluation of the yuan would be a big worry soon.
The NZD/USD pair reacted accordingly, dropping sharply after hitting important resistance at the level of 0.6414. Currently, the market is back below the golden trend line looking for support at the level of 0.6242.
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